SAF-T: A New Era for Accounting, Tax and VAT

Standard Audit File for Tax (SAF-T) is a new electronic XML based reporting standard for tax, VAT and accounting in Norway.

The Ministry of Finance has decided that SAF-T will be voluntary until January 1, 2020, at which point it will become mandatory to deliver on SAF-T format for all bookkeeping entities (i.e. subject to the Bookkeeping Act). It is our understanding that only information booked starting January 1, 2020 need to be included in the SAF-T file.

Hurtigmeny

Scope

The proposed Norwegian SAF-T reporting standard (March 2016) is based on OECD’s XML based standard - SAF-T - and includes these elements:

All postings (General ledger, Customers, Suppliers and VAT)

Accounts Receivable (Balances, master data, etc.)

Accounts Payable (Balances, master data, etc.)

Additionally it is required to use standardized VAT codes and a standardized chart of accounts. Detailed invoice information, source documents, assets and inventories are planned to be included subsequent versions of SAF-T.

The Norwegian Tax Authorities will use the SAF-T file to perform controls and tax audits. Their long-term strategy for SAF-T is to replace other reporting activities, such as, VAT forms, tax filings etc.

SAF-T will only be requested for accounting periods starting after the implementation date (i.e. January 1, 2020).

Exemptions

Companies not required to perform bookkeeping in Norway:

Companies with 600 or less vouchers per year or less then NOK 5 millions in annual turnover and keep manual/ paper based accounts.

VOES (VAT on e-Services) companies.

Impact on your business

The introduction of SAF-T will affect how your business communicates with the Tax Authorities.

When performing tax audits, the Tax Authorities will be able to perform data analyses on an unprecedented level. An XML-based transmission of data allows the appliance of sophisticated and pre-defined controls for testing, thus increasing the probability of detecting misstatements. For instance, through these analyses the Tax Authorities could identify misstated VAT entries within a few minutes.

Response:

We recommend that businesses immediately begin the process of:

Understanding to what extent your business is ready to file of accounting data to the Tax Authorities in the SAF-T format. Our experience is that companies with accounting data spread across several source systems (e.g. separate invoicing systems), customized CoAs, complex VAT treatment, and uncertainty about the quality of transactional and master data, will face the greatest challenges.

Considering whether the current internal control are capable of identifying errors before submitting the SAF-T data to the Tax Authorities. SAF-T provides the Tax Authorities with access to significantly more the organization’s accounting information. Depending on the nature of your business, it could be relevant to introduce data analytics software.

Deloitte has experts specialized in SAF-T available to assist your organization with ensuring compliance. We also have developed a range of offerings designed to meet various clients’ complexity and needs.

What we can offer

SAF-T Readiness Quick Scan

What you get

A high-level understanding of the challenges to become SAF-T compliant in less complex or smaller organizations

The Deloitte Approach

A web based SAF-T assessment tool to quickly gain an understanding of your organization’s challenges. Our SAF-T experts will analyze the results and follow up in an online meeting to discuss the findings. You will also receive a high-level findings document.

Investment

Time spent on completing the questionnaire and participate in online meeting with Deloitte

SAF-T Readiness Review

What you get

An understanding of the challenges to become SAF-T compliant including potential actions and solutions.

The findings will be summarized in a report. The SAF-T Readiness Review focuses on potential systems, process, and organizational challenges.

The Deloitte Approach

1-4 workshops with key persons to identify and discuss potential challenges and solutions; and

The preparation of a report outlining the challenges and solutions.

Investment

Participation in 1-4 workshops.

~ 30 – 200 hours depending on complexity and scope

SAF-T Reporting Services & taxCubeTM SAF-T

What you get

SAF-T compliance with Deloitte as a service provider

The Deloitte Approach

Deloitte, as an outsourced service provider, will prepare and report the SAF-T XML on behalf of your company.

Our dedicated team will use Deloitte’s proprietary taxCubeTM SAF-T to collect, combine, prepare and file the SAF-T XML. Deloitte also provides support to any SAF-T based audits and helps analyzing the SAF-T report.

Our customers may also license the taxCubeTM SAF-T for use by their internal operations teams. For a license fee, Deloitte will ensure that the solution maintained and compliant with the current SAF-T requirements.

Investment

Setup and integration

Service and user fees

Contact us

Partner

Per is a partner at Deloitte Law Firm in Norway. He has previously been the Tax Director for Norske Skogsindustrier ASA for more than 5 years, with the responsibility for tax reporting and tax plannin... Mer

Deloitte AS and Deloitte Advokatfirma AS are the Norwegian affiliates of Deloitte NWE LLP, a member firm of Deloitte Touche Tohmatsu Limited ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients.